Correlation Between Balanced Fund and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Credit Suisse at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Balanced Fund and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Institutional and Credit Suisse Floating, you can compare the effects of market volatilities on Balanced Fund and Credit Suisse and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Balanced Fund with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Credit Suisse.
Diversification Opportunities for Balanced Fund and Credit Suisse
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Balanced and Credit is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Institutional and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating and Balanced Fund is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Balanced Fund Institutional are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Floating has no effect on the direction of Balanced Fund i.e., Balanced Fund and Credit Suisse go up and down completely randomly.
Pair Corralation between Balanced Fund and Credit Suisse
Assuming the 90 days horizon Balanced Fund Institutional is expected to generate 3.58 times more return on investment than Credit Suisse. However, Balanced Fund is 3.58 times more volatile than Credit Suisse Floating. It trades about 0.27 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.33 per unit of risk. If you would invest 1,887 in Balanced Fund Institutional on April 15, 2025 and sell it today you would earn a total of 175.00 from holding Balanced Fund Institutional or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Institutional vs. Credit Suisse Floating
Performance |
| Timeline |
| Balanced Fund Instit |
| Credit Suisse Floating |
Balanced Fund and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Credit Suisse
The main advantage of trading using opposite Balanced Fund and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Credit Suisse can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Balanced Fund vs. Villere Balanced Fund | Balanced Fund vs. James Balanced Golden | Balanced Fund vs. Small Pany Fund | Balanced Fund vs. Value Line Asset |
| Credit Suisse vs. Sierra E Retirement | Credit Suisse vs. American Funds Retirement | Credit Suisse vs. Paydenkravitz Cash Balance | Credit Suisse vs. Strategic Allocation Moderate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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